Optimum Management of Energy Exchanges in Microgrid Electricity Market Based on Blockchain Technology

Abstract

Blockchain is an emerging technology that due to its unique features, such as decentralization, elimination of intermediaries, immutability and increased security, accuracy and transparency has been highly regarded in various industries, including the smart grid. Creating an electricity market for energy exchanges between producers and consumers in a microgrid is important because of the increasing tendency to use renewable energy such as solar cells. This paper presents two pricing mechanisms based on the Mid-Market Rate and the auction to find the optimal price of energy exchanges, which increases the profit from sales for producers and reduces the cost of purchase for consumers. This paper also proposes three smart contracts for peer-to-peer energy trading which are responsible for executing energy exchanges and enabling the recording of transaction information on the Ethereum network in an encrypted manner with great precision and transparency.